Q: Regarding LLC's and "personal" liability umbrella policies
I have several properties in CO, each in it's own separate LLC with me as the only member of each LLC. Does having all the LLC's insured under a PERSONAL liability umbrella defeat the entire point of the LLC's, (which is to keep each property only individually "liable" and keep my personal assets safe?) Would having all the LLC's under one commercial property liability umbrella policy work?
A: Hi there, generally your personal liability policy is not going to cover the properties owned by the LLC given that the LLC is not the insured on the policy. You would need to read the policy to be certain. An umbrella policy for all of them could be a solution if there was adequate coverage and each LLC was insured. This would not defeat the limited liability protection that comes with LLCs.
A: This is a concise question, but the issues can be complex - one option is to discuss in greater detail with an insurance professional and an attorney. In terms of coverage issues, corporate veil issues, concerns about liability, etc., it's difficult to predict what strategies or arguments a determined and aggressive plaintiff would try to apply. Good luck
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